mask Kuroda optimistic about 2017

27/ 12/ 2016

Kuroda optimistic about 2017

Daily Update

Yesterday's Market

  • JPY BoJ Monetary Policy meeting minutes, Leading economic index and Coincident index
  • JPY BoJ governor Kuroda speech

Yesterday Explained

Except for Japan market, most of the markets were closed for Christmas holidays. There was little movement when trading happened in Japan markets where Bank of Japan released its monetary policy meeting minutes followed by BoJ Governor Kuroda’s speech.

Kuroda mentioned that the global economy seems to have finally moved out of its adjustment phase after the global financial crisis and is entering a new phase. Also he stated that the Japan’s economy has improved significantly during a period of more than three and half years. The excessive appreciation of the yen has been fairly corrected, and stock prices have increased substantially.

OPEC faces a new balancing act in 2017 – boosting prices without igniting shale. OPEC is aiming for a much-needed lift to the oil price, given the stretched fiscal balance sheets of every producing nations. This should result a positive outlook for commodity currencies like CAD and AUD.

Today's Market

  • JPY National consumer price index & National CPI Ex-Fresh Food & Energy, Unemployment Rate
  • USD Consumer Confidence & Dallas Fed Manufacturing Business index

Today's Focus

Early morning today, Japan released its national consumer price index which came out positive than the expected levels. However National CPI Ex-fresh Food & Energy, Jobs/ applicants ratio, and Unemployment rate reports which followed after this came out negative in return giving a negative outlook for Japanese yen.

Later in the day, US will release Consumer confidence which shows the level of confidence that individuals have in economic activity. A high level of consumer confidence stimulates economic expansion while a low level drives to economic downturn. Following that US will also release Dallas Fed Manufacturing Business index. This indicates whether the output, employment, orders, prices and other indicators increased, decreased or remain unchanged over the previous month.